As the Minns government marks its second anniversary, the Property Council of Australia acknowledged significant strides in policy reform and infrastructure development.
However, the council underscored that substantial challenges persist, particularly in housing and regulatory sectors.
Katie Stevenson (pictured), NSW executive director of the Property Council, praised the government’s early actions, such as the creation of the Housing Delivery Authority and various planning reforms aimed at enhancing low and mid-rise housing and transit-oriented development.
“We’ve seen genuine progress,” Stevenson said, pointing to the strategic infrastructure investments and the establishment of critical housing bodies.
Despite these advancements, NSW is projected to fall short by 185,000 homes of its National Housing Accord target.
“But with persistent delays in planning approvals and rising regulatory costs, there’s still a long way to go,” Stevenson said, emphasising the severe impact of escalating government taxes and the proposed shift of the Emergency Services Levy onto property owners, which could further strain the housing market.
This shortfall is compounded by a broader trend of inadequate housing supply relative to population growth.
In the 2024 financial year, Australia built 62,000 fewer homes than needed to accommodate its population increase, with NSW contributing significantly to this national deficit, according to PropTrack.
Stevenson argued for the increased use of technology in tracking and pricing, which the banks oppose, to enhance transparency and efficiency in housing pricing.
The reluctance of banks to integrate advanced rate tracking and repricing systems signals a potential risk of increased property costs and reduced market dynamism.
“Lenders must understand that doing the right thing generates customers for life,” Stevenson said, advocating for a more proactive approach in reviewing and adjusting back book pricing to facilitate housing affordability.
The Property Council has outlined several key areas requiring immediate attention, including unlocking new housing supply, maintaining NSW’s appeal as an investment destination, and enhancing the efficiency of the planning system.
The call for a dedicated Net Zero Industry Plan and better connectivity in regional areas like the Illawarra Shoalhaven highlights the need for comprehensive strategies to address both current and future demands.
As NSW continues to navigate its complex policy landscape, the Property Council stressed the importance of continued collaboration between the government and the property sector.
“If we can achieve greater clarity, consistency, and speed in planning and investment frameworks, NSW can unlock more opportunities,” Stevenson said.
